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Warner Bros. to Try File Sharing in Germany 209

Carl Bialik writes "The Wall Street Journal reports that Warner Bros. plans to sell TV shows and movies online in Germany via P2P. In2Movies, to launch in March, 'will feature movies dubbed into German, including "Batman Begins" and "Harry Potter and the Goblet of Fire," for a fee that Warner says will be similar to the cost of a DVD. It will also offer television shows like "The O.C." and locally made programs and movies. Users, who will have to register for the service, will be able to keep the movie indefinitely. But instead of getting a movie from a central server, pieces of it could come from other people on the network who also bought that movie.' The president of Warner Bros. Home Entertainment Group says, 'Studios can't just turn their backs and hope "P2P" is going to go away tomorrow.'"
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Warner Bros. to Try File Sharing in Germany

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  • by Fusen ( 841730 ) * on Monday January 30, 2006 @12:13PM (#14598904)
    So why would someone use this service against say The Google Video Store, or iTunes. TFA doesn't mention if the files would be cheaper, but they will still be DRM'ed so by using this service you get the movie like you normally would be you also have to sacrifice your upload.
    I don't understand why anyone would want to sue this over the services that are already out.
  • whats this??! (Score:0, Insightful)

    by conan_the_trollarian ( 929617 ) on Monday January 30, 2006 @12:16PM (#14598932)
    Someone is finally waking up. I wonder how long it will take the music industry to wake up... P2P...the scent opens your eyes...
  • by Anonymous Coward on Monday January 30, 2006 @12:16PM (#14598939)
    So, for about the same price as a DVD, you get a DRM locked copy of the file and you get to pay a good chunk of their distribution costs. What a great deal!
  • by TheRappingShoe ( 950074 ) on Monday January 30, 2006 @12:17PM (#14598952)
    It will be interesting to see what kind of formats will be used, exactly how much they charge, and how much DRM they cram into the thing. If they do charge the same cost for downloading a film as the DVD version then where is the incentive to download? Surely the price should be lower to reflect the savings in materials and distribution costs.
  • At last (Score:3, Insightful)

    by danidude ( 672839 ) on Monday January 30, 2006 @12:18PM (#14598978) Homepage
    ...big corps start to realize that the old bussiness model is dead, and begin to use the new model at their advantage, instead of fighting the tide.
  • by GrumblyStuff ( 870046 ) on Monday January 30, 2006 @12:19PM (#14598983)
    ...but you get nothing? If there's any sort of limit on how many copies you can make, you'd best hope your computer never dies.

    So let's see.... None of the usual DVD extras? One language? No hard copy? SAME PRICE?

    Wow that's a bunch of ass.
  • by a_karbon_devel_005 ( 733886 ) on Monday January 30, 2006 @12:21PM (#14599006)
    Correct.

    The execs think "peer to peer" is a buzzword they need on their products but people, NORMAL people, aren't interested in the "peer to peer" part of P2P they're interested in the "free stuff I don't have to pay for" part of P2P.

    I applaud efforts to make media online easily for all who want it, that's how people want to get content. But P2P in this case isn't doing anything but showing up in headlines and making executives think they're creating "hip" products.
  • by Saint37 ( 932002 ) on Monday January 30, 2006 @12:22PM (#14599016)
    If you're going to charge me the same price for a download as you are for a DVD and you're gonna strap DRM on it to boot, I might as well buy the DVD and rip it. I now have a hard and DRM freee soft copy all for the same price.

    http://www.commodore69.com/ [commodore69.com]
  • by xirtam_work ( 560625 ) on Monday January 30, 2006 @12:23PM (#14599027)
    Are these companies stupid? Do they think we're stupid? Why ask us to pay the same price, or similar to a store purchased DVD when there's no manufacturing, packaging or physical distribution to pay for? If anything an electronic copy of a movie or song should cost less to the consumer - much less.

    I can understand people paying a similar amount for a 'premium item' like a just aired TV show or something that is similar to pay-per-view like a sports game. But, expecting people to pay full price for something that comes without the same quality of packaging as a movie that can be bought in a store is rediculous.

    And to top it off they're using a Bittorrent style system where their customers are the ones paying for the bandwidth! If I upload your show to another customer for you it comes out of my quota of data from my ISP for the month and costs you nothing! What's in it for me huh?

    These outfits really need to figure out that an electronic product should be *LESS* not that same price or more!

    Don't forget these movies are likely to be compressed to a lower quality than a regular DVD as well.
  • Good idea (Score:5, Insightful)

    by Tim C ( 15259 ) on Monday January 30, 2006 @12:23PM (#14599029)
    Shame about the price?

    For the cost of a DVD, I'm going to want a DVD. For a file that I could lose in a hard drive crash or through an accidental erasure etc, and that's potentially going to take me a couple of days to download (even if it maxes out my 2Mbps connection) and tie up my connection (if it maxes it out), I'm going to want to spend quite a bit less. That's ignoring the fact that my house can (currently) comfortably store many more DVDs than my hard drive, and somehow I don't see it being quite as simple as just burning it to disc.

    Still, that said, this is definitely a step in the right direction.
  • Whats the point? (Score:1, Insightful)

    by Workshed ( 838497 ) on Monday January 30, 2006 @12:23PM (#14599034)
    Why would anyone want to buy from this store for the same price as the actual DVD? You have to wait a few hours (depending on your internet connection), the user is likely to only be able to play it back on their PC (so unless they have a media center PC they cant even watch it on their TV), and to add insult to injury you have to waste your upload to help cut the distibution costs of WB. All this is doing is creating a bigger profit for WB with every movie sold. I could understand it if the movie were significantly cheaper but that would require a movie studio to pass their savings onto their viewers and lets face it it'll be a cold day in hell when that happens!
  • by TCQuad ( 537187 ) on Monday January 30, 2006 @12:25PM (#14599058)
    Finally, some sense in the P2P/RIAA/MPAA wars!

    They get your money to buy the content and then they don't have to pay for the bandwidth to get it to you? How could they not try it?
  • by AKAImBatman ( 238306 ) <[moc.liamg] [ta] [namtabmiaka]> on Monday January 30, 2006 @12:25PM (#14599061) Homepage Journal
    Why would I want to help WB in the distribution if I'm PAYING them for the movie too?

    Presumably for lower prices. Bandwidth is cheaper than ever, but is still expensive. Especially when you figure in the number of machines necessary to power a large multimedia network. By marginalizing the cost of the download across many machines, WB is (theoretically) obtaining savings that they can pass on to you, the consumer.

    Whether consumers see it that way (or WB passes on the savings!) remains to be seen.
  • by Lonewolf666 ( 259450 ) on Monday January 30, 2006 @12:30PM (#14599101)
    In Germany, most people have a highly asymmetric connection. DSL (which is by far the most popular version of broadband) usually comes with bandwiths like
    -1000kBit/s down and 128 kBit/s up
    -2000kBit/s down and 192 kBit/s up
    [...]
    -6000kBit/s down and 576 kBit/s up
    There are offers with higher upstream bandwidth, but those tend to be more expensive.

    So distribution per P2P will usually be hampered by the lack of upstream bandwith. Why should a paying customer accept that (and have his own upstream blocked for hours), unless he gets the content cheaper as compensation for his cooperation?
  • Re:Trial balloon? (Score:2, Insightful)

    by eta526 ( 833281 ) on Monday January 30, 2006 @12:33PM (#14599129)
    Don't forget the whole not having media thing. If I'm paying as much as for a DVD, why would I not want to have the actual disc that I could carry to a friend's house, or wherever?
  • Zero Common Sense (Score:2, Insightful)

    by Tweekster ( 949766 ) on Monday January 30, 2006 @12:35PM (#14599151)
    So basically I have to pay the same price as a DVD for less features AND I have to do the work...
    interesting...

    now will it be true P2P (ie will I be helping to spread the file, which probably wouldnt work because of DRM)

    basically, they are going to overcharge people for a DRM packed file that isnt as useful as a standard DVD then be shocked when it doesnt work...
    thats my prediction.
  • by Gyorg_Lavode ( 520114 ) on Monday January 30, 2006 @12:37PM (#14599164)
    This is a good idea. Certainly one I would be interested in. But come on. The cost of a DVD for something I download? Also I didn't see anything in the article about burning which would be very important to me. Similarly are they making the video playable in any way other than their software? Everything stored on my computer but played through my TV is done using xbox media center for me. And I don't mine sharing some. Maybe 2x or 3x my download. But I certainly am not going to leave it on indefinately and let them suck up my bandwidth. I have a 90k uplink. I become everyone's best friend when I turn on bittorrent.

    But over all I am happy to see them stepping forward. Most of the above problems, (pricing, amount to upload, burning), would take a little redirection at the corporate level and could be implimented quickly.

    We really need a universal streaming format acceptable by DRM standards but open to client implimentations. Something like NTSC over IP. The server can be closed but the client should be universal so that I can get it built into my xbox media center or my windows media extender, etc. I would think that recording this would be no more of a threat than recording to a vhs tape or rca in connection.

  • by ehrichweiss ( 706417 ) on Monday January 30, 2006 @12:37PM (#14599170)
    From TFA: "for a fee that Warner says will be similar to the cost of a DVD"

    It doesn't look like they're planning on passing any of the savings on to the real distributors/consumers, that was my point. And as has been stated repeatedly, if the prices are not going to be reduced I'd rather just buy the DVD and save my bandwidth(upload and download) for things that profit me as an individual. They need to pass on some form of secondary gain here and SIGNIFICANLTY cheaper pricing or free movies in exchange for sharing your bandwidth are the first two that come to mind.

  • by 16K Ram Pack ( 690082 ) <tim.almond@NosPaM.gmail.com> on Monday January 30, 2006 @12:38PM (#14599180) Homepage
    Digital distribution - well done.

    Same price as a DVD? Wake up. Why should I pay the same for something more restricted?

    Do content producers think they can do the same thing they did with CD and DVD, and just keep/raise prices with formats? You've got to add something to earn a premium.

  • by brain1 ( 699194 ) on Monday January 30, 2006 @12:39PM (#14599188)
    Somehow what seems missed here is the cost of keeping my PC alive 24/7 just to give free bandwidth with no payback. If I have to buy the movie, put up with it's DRM, and give the person who charged me (at no discount) free server space, no deal! If I buy the DVD, I have the physical copy, can play it on anything I own, thanks to many who are equally sick of the abuse of the fair use act. I dont wear out harddrives, cook the CPU, and run up my electric bill with the 600W power supply. Plus the only way I would run a P2P server is if I can run it under Linux where I have *real* control of what is exposed to the wire.

    Besides, unless you have a OC-3 fiber cabinet installed in your hall closet, it will take an eternity to download top-quality video via typical ADSL. Forget it if you only have a modem.

    Oops, I forgot. We, in the US, have an inferior system of obsolete TELCO's who grudgingly gave us DSL just to protect their obsolete switches from meltdown due to all the modems.

    -dh
  • The reason people prefer P2P than buying DVD's (or CD's for music) is the friggin' overinflated prices imposed on them!

    The **AA isn't willing to let go of their precious dollars. And so, they pretend to modernize themselves by offering downloads, but they don't modernize what REALLY keeps them in the jurassic age. The prices.
  • by neoform ( 551705 ) <djneoform@gmail.com> on Monday January 30, 2006 @12:46PM (#14599237) Homepage
    And what makes them think this will even work?
    If I was to pay for a download, I'd cap my upload at 1k/sec (on my router even, if i had to) and I'd also kill the sharing as soon as it's done downloading.. why waste my upload speeds if it's going to be costing me something?

    The only reason Torrents work right now is because people upload as much as they download, if everyone were to do like me in this case (which i think they would), this wont work at all.
  • NORMAL people, aren't interested in the "peer to peer" part of P2P they're interested in the "free stuff I don't have to pay for" part of P2P.

    I don't necessarily agree. I think iTunes shows that people are willing to pay (for a reasonable price), but that they want the convenience of electronic distribution. The producers sort of get this, but they don't modify their business model to match. It just doesn't seem to occur to them that an electronic copy doesn't have as much intrinsic value as a physical reproduction that you can hold in your hand. Thus these online distribution methods often fail as consumers scream, "But I can get the same thing at Wal-mart and own something!"
  • by plover ( 150551 ) * on Monday January 30, 2006 @12:52PM (#14599288) Homepage Journal
    I'd do it. As long as the movie isn't DRM crippled, I'd pay to P2P it for several reasons.

    First, I don't want the DRM. I'm willing to give up "something" of mine in exchange for a freely usable movie. For example, I'd pay a premium for unprotected DVDs. Ripping is a total hassle, and a big waste of my time. If the extra cost to me is a blank DVD (or a bit of hard drive space) fine.

    Second, I don't care about my outgoing bandwidth all the time, just when I'm trying to use it. I'll typically leave Azureus up after downloading something if I'm not interested in using the web once I've gotten the content. But if I want to get back to surfing, well, then it's going to get paused for a while.

    Finally, I'd do it to encourage this type of behavior from the studios. Yes, I'll be responsible with your movie. No, I'm not going to share it without your permission. Yes, I'm willing to pay you for it.

  • by Lumpy ( 12016 ) on Monday January 30, 2006 @12:52PM (#14599290) Homepage
    did you even read the summary? they will be charging "similar to DVD prices" for something that is of lower quality, lacking the DVD extras and you pay for the bandwidth.

    Yeah, people will jump all over that.

    it simply reinforces the fact that the movie industry is ran by a large number of retarted people that have zero clue about business let alone how to sell a product.

  • by Yonder Way ( 603108 ) on Monday January 30, 2006 @12:56PM (#14599328)
    It's nice to see them trying to meet their customers halfway but really I think a few things have to happen:

    1) Eliminate DRM.
    2) Price the movies so cheaply that there isn't much point in stealing it. If a song is worth $1, and a TV show is worth $2, a movie shouldn't be worth more than $4 or $5 (US dollars). Make the "special features" a free optional download for people who have purchased the movie (a lot of people, myself included, will usually opt to just download the movie). Note that this could almost completely assume all of the $$$ that rental outfits are making from movies, allowing the studios to pocket profits from the vast majority of people who will just view the movie once and then discard it.
    3) Work with the major PVR platforms to make it easier to buy an unencumbered $4 or $5 movie right from the menu than it is to download a pirate torrent and import it into the PVR. Don't just partner with one major commercial interest, get in bed with the OSS platforms also. Billions of dollars are at stake so spending a couple of million to have your product supported on the majority of popular PVR platforms is buying free money.
  • So can I burn it? (Score:4, Insightful)

    by Kjella ( 173770 ) on Monday January 30, 2006 @01:06PM (#14599418) Homepage
    ...like you can burn CDs with iTMS.

    Pros:
    Available online, no need to get to a store. But if getting to a store is that hard, do they have proper broadband out there in the wilds?
    Possibility for instant start (downloading as you go). Much more difficult with torrent-like systems because you need them in order. Can they provide that kind of sustained speeds to most consumers anyway?

    Cons:
    For a DVD, you can often get it as quickly by retail stores, online sites if you don't have good broadband
    You know where you can get it cheaper...
    You don't get any of the packaging. Do we even get the DVD extras?
    Can you take a back-up?
    Can you play it on a regular DVD player?
    Can you move it to other machines like you can with a DVD disc?
    They want to use your upload bandwidth

    Basicly, no burning is a total and complete dealbreaker for me. And I know we can't burn CSS DVDs (consumer burners can't), and we won't be allowed to burn non-CSS DVDs. And if your HDD dies? Either you must a) download countless gigabytes AGAIN, or you must burn back-ups (maybe with some activation scheme). But then there's really no advantage over regular DVDs anyway, except now you need to make your own hardcopy. There's a big difference between having a HTPC and being forced to absolutely, for all future have to use one. Bought a DVD player to have in your cabin/car (great way to make kids STFU)/son's/daughter's room? Sorry.
  • It's a good start (Score:3, Insightful)

    by roman_mir ( 125474 ) on Monday January 30, 2006 @01:09PM (#14599447) Homepage Journal
    It is a good start but it won't really take off until they revise their idea of how it is supposed to work and how much it should cost to the end user. Downloading a DVD for a price of a real DVD doesn't make sense, because if you want to play it in a DVD player now you have to buy an expensive blank and spend time burning the thing.

    It would make some sense if they at least mailed you the real DVD after you buy the right to download a copy. But that is what I would do and I think I can come up with some innovative ideas time to time.
  • by db32 ( 862117 ) on Monday January 30, 2006 @01:23PM (#14599565) Journal
    If these aren't drastically compressed in some fashion you are looking at a couple gigs of data per movie. Downloading a file that is 5+ gigs over a P2P application... If you are really hell bent on staying home you could probably order the actual DVD from a website and it show up before your download finished AND still be able to surf the web while you wait instead of having your link crushed under all the other people trying to download 5G worth of data from your computer.
  • by Rendus ( 2430 ) <rendus@@@gmail...com> on Monday January 30, 2006 @01:41PM (#14599706)
    500 real servers with real bandwith, versus Timmy and Jane and 50000 others in Mom's basement on their async DSL and cable..

    I'll take the 500 real servers.
  • by Deliveranc3 ( 629997 ) <deliverance&level4,org> on Monday January 30, 2006 @02:10PM (#14599934) Journal
    Interestingly for some of us P2P nutters we find this method of getting movies easier and less painful.

    I don't have to get up go out and buy the movie, I just read a review and click a link.

    If they allow users to burn a copy to DVD this will improve the lives of the majority of their clients...
  • by Dr. GeneMachine ( 720233 ) on Monday January 30, 2006 @02:11PM (#14599941)
    Exactly, except i can go without the subtitles. You know why I do not go to the cinema anymore? I can't stand the german dubbed crap. Horrible, just horrible, in most cases. Since the availability of multi-language DVDs and undubbed versions from... well, you know from where, I can't be arsed to put up with crappy dubs any more. They can take their german dubbed, crippled, overprized crap and shove it where the sun doesn't shine. I do not care.
  • Out with the Old? (Score:2, Insightful)

    by ClamIAm ( 926466 ) on Monday January 30, 2006 @02:53PM (#14600294)
    All "media" is inherently prone to unauthorized copying. Part of this is human nature. We learn how to walk, talk, and act by repeating everything we hear and see. We remember quotes and songs and want to share them with friends. We also like to gain things for less work or resources whenever possible. Such is the case with copied media that's mass distributed. As soon as machines or techniques the average person can use become available, the genie's out of the bottle. And you can't stuff him back in there, no matter what tactics you use. I believe that the people running the media cartels really do understand this at some level.

    The goal of gambling is generally to maximize your positive expectation (this means positive outcome. Cf. writers like David Sklansky [twoplustwo.com]). While I encountered this statement in a book about poker, I believe it applies pretty well to business and other aspects of life. And the cartels probably understand this more than the genie metaphor.

    So if they understand their precipice of a business model, and they are trying to maximize profits (positive outcome), then why are they not trying to really "embrace" alternate distribution? My take on this is that they've done the research and concluded that they can make more money through DRM, scare tactics (lawsuits), and FUD.

    DRM is really a temporary solution. It makes copying harder, so it works on the non-technical. Coupled with the DMCA, it creates an end-run around fair use rights as they can sue anyone who releases information about how to bypass the restrictions. It can't last forever, as there are those who want to copy media, and stopping human communication is not possible.

    The scare tactics (lawsuits) and FUD could be considered a temporary solution, or you could compare it to any authority asserting power over the peasants. These work (at least in the US, I don't know about other places) because the average person here doesn't research or apply any logic to the corporate nightly news they watch, often owned or affiliated with the same corporations who hold massive copyright interests (ABC, NBC, CBS, WB, FOX, etc). When the lawsuits started, the average person had probably seen or read two things about file-sharing: "peer-to-peer makes copying easy" and then, a bit later "file-sharers go to court". The FUD works in basically the same way.

    I believe that public opinion is really key here. Sure, there are those who buy the FUD and learn a distorted view of copyright. And there are those who favor abolishing copyright altogether. But I think that the majority of people are somewhere in the middle. These are the techies who see the ridiculousness of the propositions made by the cartels (in terms of technology), or the soccer moms who want to copy that DVD so Timmy doesn't ruin the original.

    This is where we have to step in. The great thing about this point in time is that most people don't understand much about the situation. I found this out when I was home during Christmas/New Years. I consider my dad to be smarter than average, yet he thought DVD burners might be illegal (he has one in his 2-year-old iMac), and I don't think he really understood me when I didn't want to go to the movies unless there was something I really wanted to see (he asked why, I said "unethical business practices").

    So what should we do? Well, we have a situation where public opinion is important and the same public does not understand the issues very well. This means those who want to tame the feudal-style trade groups (cf. Guilds [wikipedia.org]) should find some way to raise awareness about these issues.

    There are organizations like Free Culture [freeculture.org] and Downhill Battle [downhillbattle.org] who are trying to do this. They are a great resource for the many slashdot (and similar) types who complain about the copyright situation, yet maybe don't

  • by Anonymous Coward on Monday January 30, 2006 @03:07PM (#14600407)
    Maybe they _want_ it to fail, still. So they can point at evil children who didn't buy into their crippled business-model, still.
  • by RyatNrrd ( 662756 ) on Monday January 30, 2006 @03:14PM (#14600442) Homepage Journal
    I don't think they're retards; they're merely evil.

    Here's what I predict: consumers will say, "No hard copy, no extras, and I pay for distribution? No thanks" - and quite rightly so.

    Then Ebineezer RIAA Exec says: "Aha! Aha! Look! We offered our content via P2P like everyone said we should and nobody paid for it! P2P networks are therefore only for people who want something for free, the dirty pirates, so now nobody can fault us for going after them with our lawyers out!"

    And the great circle of life will continue to spin around and around.
  • by tambo ( 310170 ) on Monday January 30, 2006 @03:34PM (#14600598)
    t doesn't look like they're planning on passing any of the savings on to the real distributors/consumers, that was my point.

    Exactly.

    I presume that Warner believes they've conditioned consumers into believing that $15-$20 is a fair price for a movie; that would be a good reason to charge the same for an electronic version. However, they're dead wrong in this presumption. Rather, they have conditioned consumers into paying that price for a DVD that contains the movie.

    The physicality of the DVD is important to the consumer: the disc has nice silkscreen imaging; the packaging looks good and protects the disc; it looks great on a shelf; etc. There are practical implications, too: except for a few specific illegalities (bootleg copying, exctracting the content without the copy protection, etc.), the consumer can do what he wants with the disc - view it at a friend's house, sell it, etc.

    In other words, the physicality is a very serious "value-add" for the DVD consumer. Warner can't strip all of that away, sell just the contents of the disc, and expect the same profit. A file on a hard drive is not as appealing as a DVD slipcover in a media stack. And consumers are savvy enough to fear the restrictions that will inevitably accompany this file: it will be locked to a specific computer, no resale value, etc.

    In short: Warner is crazy if it believes that consumers equate a DVD with the bare file contained on the DVD. It's fundamentally mistaking the elements of a DVD that represent worth to the consumer.

    - David Stein

  • by syousef ( 465911 ) on Monday January 30, 2006 @09:33PM (#14603528) Journal
    You're completely missing the point entirely.

    The movie industry doesn't want this sort of venture to succeed. They're not all stupid and retarded as one poster said. They want this to fail so that they can point and say "see there's no legitimate use for P2P. When we offered a legitimate P2P service people didn't use it. So your honour we should just shut down all the P2P since it's only used by theives!". Of course they won't mention the fact that they'd kept prices high, while forcing the customer to pay twice (once for the movie, once for the bandwidth).

    I mean for pity sake if they wanted to distribute the content to the users in a better way, they could just drop the price on the DVDs and make it possible to back them up instead of wasting money on this little venture. Success is not their goal here!

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